Federal Reserve

Archive for Federal Reserve

Further Explanation of My Defense of Kling from Sumner

OK now that I have a little more free time, I clarified my response to Sumner (in defense of Kling on Recalculation). I am simply re-posting my long comment from Scott’s blog. (If you don’t know what the context is for this, just follow the link. Scott brings you up to speed in his original […]

Instead of a Peek, Scott Sumner Should Have Taken a Ponder

I am so naive. In response to what I think was a magnificent defense of Arnold Kling against Scott Sumner (and Brad DeLong), I was expecting Scott to either blow me up, or to admit that I had a good point and the Austrian theory went up one notch in his book. But alas, all […]

Can Austrian Business Cycle Theory Explain Construction Employment?

With all the excitement over my favorite Keynesian, I almost forgot about the untimely demise of Scott Sumner yesterday. Joking aside, I really think I snatched victory from the jaws of defeat for Arnold Kling in his argument with Sumner (concerning housing starts and the Great Recession). I emailed this to Kling myself, but I […]

Plosser Rocks the Bernanke Boat

Wow is this as unusual as I think it is? I’m going to reproduce Jerry O’Driscoll’s full post (from ThinkMarkets): Philadelphia Fed President Charles Plosser gave a major speech on Monday at the Central Bank of Chile. In the polite language of central bankers, the speech constitutes a systematic criticism of not only current Fed […]

There’s No Such Thing as Bad Publicity

This is good, I was going to go streaking if I didn’t start getting more links… In response to my critique of David Beckworth, Bill Woolsey, Josh Hendrickson, and Beckworth himself (here and especially here) triple-teamed me. I will digest their responses and probably post another Mises Daily on all this. Let me say one […]

Is There a Conservative Case for QE?

I say no. An excerpt: And there you have it, clear as a bell. Paul Krugman couldn’t have said it any better. According to Beckworth, the problem with our economy is that people aren’t spending enough. This simple idea is very powerful; it permeates our financial press when they wring their hands and wonder if […]

Bank Reserves: Thesis, Antithesis, Synthesis

Ahh, I feel much better now. During the “office hours” for the Mises Academy “Anatomy of the Fed” class, I think I resolved something that had been bugging me for months. We all know the standard textbook story of fractional reserve money creation: The Fed buys assets and creates new reserves (“out of thin air”). […]

Krugman Sends Love Note to Sumner

These two need to get a room: I think I now understand the otherwise weird resurgence of paleomonetarism in the midst of a prolonged liquidity trap. It’s not really about analysis, it’s about morality. You see, if you’re the kind of person who views being taxed to pay for social insurance programs as tyranny, you’re […]